As of now, no takers for UFC’s new media right deal

November 20, 2017

The Sports Business Journal reports the UFC’s current state of negotiating a new media rights package once its deal with FOX is up.  Currently, the new asking price of $450M per year is a stiff increase that is not garnering a lot of interest at this point.

The current deal with FOX is worth $120 million per year (with it jumping to $160 million for the last year) for the 7 year deal which ends at the end of 2018.  The UFC is looking to increase its rights fee to $450 million per year.  Traditional media companies appear to be weary of the hefty ask.

The article notes that it has had meetings with online companies Amazon and Oath.  There has been speculation that the next media rights deal could include a digital only platform which would be unprecedented.

SBJ notes that with the WWE’s media rights deal coming up in the fall of 2019, the market and bargaining leverage might be hindered for the UFC.  WWE has met with Fox earlier this summer as part of the pro wrestling company’s road show with various networks “to show the power of its programming.”  The WWE’s deal with NBC in 2017 is estimated at $180 million.

Payout Perspective:

With the WWE’s media rights deal up around the same time as the UFC, re-upping with Fox may be tougher than expected.  Although the two companies differ in entertainment products, Fox could see the WWE as a suitable replacement (with better TV ratings) for its FS1 network if the UFC asks for too much.  The unknown factor is the possibility of taking its media rights to a digital only platform.  While this may seem unlikely, the UFC has been a company willing to take risks.  The new ownership may be risk averse but if it cannot secure a deal in the neighborhood of its asking price from a traditional media company, it may look to other alternatives.

One Response to “As of now, no takers for UFC’s new media right deal”

  1. Jesse on November 24th, 2017 8:36 PM

    not good

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